Definition
Leverage allows a trader to control a position larger than their deposited capital. 10× leverage on a $1,000 account controls a $10,000 position. Losses are also magnified, making stop-loss placement critical.
Also under “L”
Liquidation
Liquidation occurs when a leveraged position's losses exceed the margin deposited, causing the exchange to automatically close the position. Liquidation price depends on entry price, leverage, and fee structure.
Liquidity
Liquidity refers to how easily an asset can be bought or sold without significantly moving its price. CryptoSignal Pro requires at least $5M 24h trading volume before a signal can fire to avoid slippage risk.
Long
Going long means buying an asset in expectation that its price will rise. In a long trade, profit is realized when you sell at a higher price than you paid.
More terms
Altcoin
An altcoin is any cryptocurrency other than Bitcoin. Examples include Ethereum, Solana, and Avalanche. Altcoins often show amplified volatility relative to Bitcoin during both bull and bear cycles.
ATR
ATR (Average True Range) measures average price volatility over a lookback period. Traders use it to size stop losses proportionally to current market conditions rather than using fixed-point distances.
Backtesting
Backtesting replays a trading strategy against historical price data to estimate how it would have performed. CryptoSignal Pro uses walk-forward backtesting with out-of-sample validation to reduce overfitting.